Domestic Regulations and
Multilateral negotiations
Sumanta ChaudhuriCounsellor,
Permanent Mission of India to the WTO
Importance of Domestic Regulation Disciplines
Complement market access, particularly in areas of interest to developing countries like Mode 4
Maintain the balance between right to regulate and DR not being used to impede Market Access
Lack of specific disciplines leaves the road open to disputes and creates uncertainty
Disciplines on DR can provide incentive for needed domestic reforms
Capacity constraints in implementation of disciplines should be factored in
Mandate on DR In-built mandate in GATS - Article VI:4 for
development of disciplines Covers
- Qualification Requirements and Procedures (QRP) , - Licensing Requirements and Procedures (LRP) and - Technical Standards (TS)
Hong Kong Ministerial - Specific mandate for developing disciplines before end of
Round - Call for intensification by developing tests- Basis – proposals and Illustrative List of Elements
Current State of Play
Move from proposals to textual language proposals
Texts put on the table on QRP LP TS Transparency S & D General Principles including Right to Regulate
Next stage is development of Consolidated Text by Chair June/July 2006 Nature of Consolidation
Current State of Play(continued)
Differences in levels of ambition both overall and on specific elements
General move towards horizontal disciplines covering possibly all aspects of Article VI:4
Specific sectoral disciplines unlikely to be pursued Would apply almost definitely only in sectors where
specific commitments undertaken Relationship with Articles XVI/XVII Need for some S & D recognized while realizing that
different regulations infeasible
Specific Issues - Right to Regulate
Balance between right to regulate and DR not constituting unnecessary barriers to trade recognized
Concept of Necessity Test Broad necessity test – jurisprudence issues Can be covered through specific disciplines in all aspects Balance not achieved only through NT
Issue of national policy objectives Specific mention vs leaving it open Broader than only quality of service
Transparency Relevant for all aspects of Article VI:4 Add to existing obligations on transparency Specific features
Notification/publication – Domestic, WTO Effective use of Enquiry/Contact Points Reasonable time between notification/publication
and entry into force Issue of prior Comments
Qualification Requirements Of particular importance for effective market access
especially in Mode 4 Core relates to availability of mechanisms for
verifying foreign qualifications Specification and assessment of education, course work, training,
work experience Identification of additional requirements Possibility of meeting identified deficiencies other than only in host
Country Permission to supply service through such mechanism
Examinations including relevance to service supplied, eligibility and accessibility, frequency of exams,
Licensing Procedures Administration – concepts of neutrality, objectiveness
and impartiality Documentation – not burdensome, format and
relevance Timeframes
Reasonableness Entry into effect of license
Fees – related to administrative costs, concession for developing countries, revenue considerations
Review/appeal – reasons for rejection, resubmission of applications
Special & Differential Treatment
Longer implementation periods for compliance
Compliance to take account of regulatory capacity and levels of
development
Technical assistance and capacity building including in
implementing disciplines
Recognition of needs and regulatory capacity to facilitate
services exports from developing countries – phased
introduction for compliance
Treatment for LDC’s – longer periods, best endeavour
Technical Standards Lack of information on such standards in services
and on standard setting bodies Mandatory vs. voluntary standards
Technical regulations/standards Non governmental bodies/associations with delegated
authority Use of relevant international standards
How these are developed – relevant international organizations
Relation with domestic standards Presumption of consistency with disciplines if used in
domestic law Conformity assessment
Conclusions DR disciplines essential deliverable of
services package in DDA Need to cover in balanced way differing
interests of Members covering all aspects of VI:4
Levels of ambition and depth of coverage likely to be different and still undecided
Disciplines likely to reaffirm & expound on balance between right to regulate and regulations not constituting unnecessary trade barriers